Radware Stock Valuation

RDWR
 Stock
  

USD 20.69  0.26  1.24%   

How much is Radware worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Radware, is its stock price multiplied by the total number of shares outstanding, calculating Radware's enterprise value requires a different approach. It uses Radware's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 12/04/2022, Free Cash Flow is likely to drop to about 19.2 M. In addition to that, Enterprise Value is likely to drop to about 525.7 M.
Radware holds a recent Real Value of $18.73 per share. The prevailing price of the company is $20.69. At this time, the company appears to be overvalued. Our model determines the value of Radware from analyzing the company fundamentals such as Return On Equity of (0.0043) %, shares outstanding of 44.84 M, and Operating Margin of 0.0232 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support buying undervalued entities and selling overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Radware Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Radware's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Radware Most Recent Valuation Data

Beta
0.99
Fiscal Year End
December
property Plant And Equipment Net
45.1 M
Enterprise Value
674.7 M
current Deferred Revenue
99.9 M
net Debt
-65.1 M
Overvalued
Today 20.69
Please note that Radware's price fluctuation is not too volatile at this time. Calculation of the real value of Radware is based on 3 months time horizon. Increasing Radware's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Radware is useful when determining the fair value of the Radware stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Radware. Since Radware is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Radware Stock. However, Radware's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
18.73
Real Value
21.88
Upside
Estimating the potential upside or downside of Radware helps investors to forecast how Radware stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Radware more accurately as focusing exclusively on Radware's fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
-0.05-0.04-0.03
Details
Hype
Prediction
LowEstimated ValueHigh
17.5420.6923.84
Details
9 Analysts
Consensus
LowTarget PriceHigh
12.0016.6420.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Radware's intrinsic value based on its ongoing forecasts of Radware's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Radware's closest peers. When choosing an evaluation method for Radware, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Radware Investments

205.54 Million

Radware Valuation Drivers Correlation

Many accounts on the financial statements of Radware are highly interrelated and sometimes correlated. Consequently, when conducting Radware's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Radware
Click cells to compare fundamentals

Radware Valuation Trend

Knowing Radware's actual value is paramount for traders to make sound investment determinations. Radware's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Radware's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Radware's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Radware Market Cap

Radware is rated fourth in market capitalization category among related companies. Market capitalization of Information Technology industry is at this time estimated at about 2.4 Trillion. Radware adds roughly 927.76 Million in market capitalization claiming only tiny portion of equities under Information Technology industry.
Capitalization  Total debt  Valuation  Revenue  Workforce

Radware Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Radware's current stock value. Our valuation model uses many indicators to compare Radware value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Radware competition to find correlations between indicators driving Radware's intrinsic value. More Info.
Radware is currently regarded as top stock in price to earning category among related companies. It is rated below average in beta category among related companies totaling about  0.01  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Radware is roughly  107.08 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Radware by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Radware's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Radware's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Radware's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Radware and how it compares across the competition.

About Radware Valuation

The stock valuation mechanism determines the current worth of Radware on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Radware. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Radware based exclusively on its fundamental and basic technical indicators. By analyzing Radware's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Radware's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Radware. We calculate exposure to Radware's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Radware's related companies.
Fiscal Year End
December
Industry
Software-Infrastructure
Concentration
Communications Equipment
Full Time Employees
1.1 K
Service Category
Communications Equipment
Last ReportedProjected for 2022
Gross Profit160.5 M129.1 M
Profit Margin 0.08  0.08 

Radware Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Radware does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y-0.295

Radware Current Valuation Indicators

Valuation refers to the process of determining the present value of Radware and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Radware we look at many different elements of the entity such as Radware's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Radware's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Radware's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Radware, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Radware's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Radware's worth.
Additionally, take a look at Your Equity Center. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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When running Radware price analysis, check to measure Radware's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Radware is operating at the current time. Most of Radware's value examination focuses on studying past and present price action to predict the probability of Radware's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Radware's price. Additionally, you may evaluate how the addition of Radware to your portfolios can decrease your overall portfolio volatility.
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Is Radware's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Radware. If investors know Radware will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Radware listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.29) 
Market Capitalization
927.8 M
Quarterly Revenue Growth YOY
(0.039) 
Return On Assets
0.0068
Return On Equity
(0.0043) 
The market value of Radware is measured differently than its book value, which is the value of Radware that is recorded on the company's balance sheet. Investors also form their own opinion of Radware's value that differs from its market value or its book value, called intrinsic value, which is Radware's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Radware's market value can be influenced by many factors that don't directly affect Radware's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Radware's value and its price as these two are different measures arrived at by different means. Investors typically determine Radware value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Radware's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.